It
appears almost all the taxes on homesteads are being raised the maximum 10%
Texas law allows. So if you live in an average $250,000 home your tax
assessments are being raised by $25,000. If your taxes are between 2.2% to
3.0% depending on location, your taxes could increase between $550 and $750.
If you do nothing, when the taxes come due in October your Escrow will probably be
short these amounts, and the lenders will charge the back taxes due, as well as
add that amount into the calculation for the next year’s Escrows, making you possibly pay twice the amount of the tax shortage.
My recommendation is to pay a few extra dollars on each monthly payment with a note indicating that the extra payment should be added to your Escrow. If you start paying $125 to $150 a month starting June 1st, your Escrow should be OK and you should not get a letter from your lender raising your payments for the next year to make up for this shortfall.
Obviously
- these are relative amounts depending on price ranges of your homes.
Please consult with your tax adviser/financial institution, to determine the best route for your situation. Nothing in this communication is intended to constitute legal or tax advice.
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